Decagon raises $250M to scale concierge-style AI customer support
Decagon, a San Francisco-based company building AI-powered customer experience agents, has raised $250 million in Series D funding, valuing the business at $4.5 billion. The new valuation nearly triples the company’s value in roughly six months, underscoring accelerating investor appetite for AI systems that can replace legacy customer support workflows with more personalized, always-on service.
The round was led by new investors Coatue Management and Index Ventures. Additional participants included Chemistry VC, Definition Capital, and Starwood Capital, alongside returning backers such as Andreessen Horowitz, Accel, Bain Capital Ventures, Elad Gil, Forerunner, and Ribbit Capital.
Why the round matters
Customer expectations have shifted quickly as generative AI becomes embedded in everyday products. Consumers increasingly expect fast, tailored answers across channels, while many enterprises still operate on systems built for an earlier era—think IVR phone trees, ticket backlogs, and scripted chat responses. Decagon is positioning its platform as a modern alternative: AI agents designed to behave like digital concierges, not basic chatbots.
“This fast growth and large capital investment are both testaments to why our fundamentally different concierge approach to product is winning the market over and disrupting the outdated incumbent strategies,” said Jesse Zhang, CEO and co-founder of Decagon.
Decagon’s product: AI agents across voice, chat, email
Decagon builds conversational agents intended to handle customer questions across voice, chat, email, and messaging channels. The company says its goal is consistent, personalized support that can scale without forcing businesses to rely on rigid decision trees or brittle workflows.
Rather than requiring teams to configure complex flowcharts, the platform allows companies to provide agents with clear instructions that combine natural language guidance with what the company describes as engineering-level control. In practice, this approach aims to reduce the gap between business intent (“handle billing disputes like our best agents do”) and operational execution across support channels.
According to the company, customers using the platform see average deflection rates above 80%, meaning a large majority of requests are resolved without human intervention while maintaining service quality. Deflection is a key metric in the customer support market because it directly affects staffing costs, wait times, and customer satisfaction.
Replacing legacy systems—and avoiding in-house builds
Decagon says many customers adopt its platform specifically to replace older tools. Approximately 53% of customers replaced legacy systems such as IVRs, ticketing software, or CRM-based agent tooling. Another 33% reportedly had no AI automation in place prior to adoption, while 14% selected Decagon instead of building an in-house solution.
The company’s customer list includes brands such as Avis Budget Group, Chime, Oura Health, and 1-800-FLOWERS.COM, reflecting adoption across travel, financial services, health, and retail.
Brian Choi, CEO of Avis Budget Group, said the company is using the platform to rethink service delivery at scale. “With Decagon, we’re moving customer engagement from reactive service to intelligent, concierge-led experiences that empower our frontline teams to resolve issues faster and more effectively,” he said, adding that AI partnerships are increasingly central to modern commerce.
Investor thesis: concierge-level support at enterprise scale
Investors framed the deal around the belief that enterprises are entering a new phase of AI adoption—one where customer experience becomes a major proving ground for autonomous systems that can operate across channels and integrate into broader business processes.
Lucas Swisher, a general partner at Coatue Management, said Decagon is enabling “concierge-level interactions at scale,” arguing that AI-driven commerce will require customer engagement tools built for high-volume, high-expectation environments.
Sofia Dolfe, partner at Index Ventures, said the firm is backing the founders’ approach to reimagining customer experience “from first principles,” emphasizing design, intention, and end-user delight—an angle that suggests differentiation may come not only from model performance, but from product experience and operational reliability.
What Decagon plans to do with the capital
The company said the new funding will be used to scale its platform, meet growing enterprise demand, and deepen its role in broader company-wide AI strategies. That positioning is notable as many enterprises move beyond isolated pilots toward cross-functional AI programs that touch support, sales, operations, and compliance.
The round follows what Decagon described as a strong 2025, during which it signed more than 100 new enterprise customers and expanded across sectors including travel, finance, health, and online retail. As competition intensifies among AI customer service vendors—ranging from chatbot incumbents to new “agentic” platforms—execution will likely hinge on reliability, security, and the ability to integrate with existing enterprise systems while delivering measurable cost and experience improvements.
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